Coinbase Report Hints Price Drop for Bitcoin Despite New All-Time High
The post Coinbase Report Hints Price Drop for Bitcoin Despite New All-Time High appeared first on Coinpedia Fintech News
In a recent report, Coinbase analysts David Duong and David Han highlight potential challenges for cryptocurrency markets despite Bitcoin hitting all-time highs.
While short-covering initially boosted the upside, the analysts note that U.S. spot Bitcoin ETFs remain a crucial anchor for demand. However, they caution that upcoming macro and technical headwinds might impact the market in the weeks ahead.
What’s Coming?
Coinbase report highlights potential challenges associated with the Federal Reserve’s choice to cancel the Bank Term Financing Program (BTFP). The move, scheduled for March 11, could affect banks’ opportunities but could also bring some problems back into the financial system
Also, with fund managers declining and accumulating at the end of the quarter, the market could be a little tighter.
Limited Operation until Mid-April
Coinbase suggests Bitcoin could face a period of restrained trading due to these mixed factors. The report anticipates a narrow trading range until the next big thing happens – the Bitcoin halving in mid-April. This four-yearly event, set to slash Bitcoin mining rewards by half, could shake things up.
Interestingly, the report also discusses how exchange-traded funds (ETFs) are changing the game for bitcoin. ETFs make bitcoin behave differently, making it a little harder to predict based on previous half cycles. ETFs now hold nearly three times as much bitcoin as miners.
And what about now?
Coinbase report gives us the lowdown on the challenges ahead for Bitcoin, giving us a clearer picture of the big financial picture and how the market is evolving.
As the cryptocurrency world deals with these setbacks, all eyes are now on the Bitcoin halving event in mid-April, which is expected to be a turning point for the market.
